Machinery of Government€¦ · Machinery of Government This document aims to help agencies...

Public - I1-A1

Machinery of Government

Implementing Change

April 2019

of 28 Public - I1-A1

Table of contents

Machinery of Government ............................................................................................... 2

Overview ......................................................................................................................... 3

Machinery of Government principles .............................................................................. 4

A whole of government approach ................................................................................ 4

Negotiating in good faith .............................................................................................. 4

Open and honest identification of resources ............................................................... 4

Timely and accurate information exchange ................................................................. 6

Legislation and policy accountability and compliance ................................................. 6

Planning .......................................................................................................................... 8

Post-election Machinery of Government changes ....................................................... 8

Governance arrangements .......................................................................................... 8

Due diligence requirements ....................................................................................... 10

Communication ......................................................................................................... 11

Cabinet submissions and notes and ministerial notices ............................................ 11

People management ..................................................................................................... 13

Legal framework ........................................................................................................ 14

Industrial framework .................................................................................................. 16

Employees follow function ......................................................................................... 16

Transfer of employees with a workers compensation claim ...................................... 17

Transfer of executives ............................................................................................... 18

Incomplete recruitment action ................................................................................... 18

Induction of transferred employees ........................................................................... 18

Financial management.................................................................................................. 19

Budgets ..................................................................................................................... 19

Allocation of corporate costs ..................................................................................... 20

Banking and appropriations ....................................................................................... 21

Records management................................................................................................... 22

Information and communication technology changes ............................................... 22

ATTACHMENT A – Machinery of Government Changes: Key Legislative Provisions,

Instruments and Approvals ........................................................................................... 24

ATTACHMENT B - Machinery of Government implementation checklist ...................... 25

ATTACHMENT C - References and Resources ........................................................... 28


Machinery of Government

This document aims to help agencies implement Machinery of Government (MOG) and

other changes to administrative arrangements.

MOG changes are the prerogative of the Premier and can include:

• appointing ministers

• establishing or abolishing departments

• transferring responsibility for functions, legislation or departments between

ministers

• transferring functions within the public sector.

This handbook provides:

• an overview of the MOG process

• principles and approaches for planning and implementing MOG changes

• detail about people management issues

• an approach to financial management issues

• records management advice.


Overview

Machinery of Government (MOG) refers to the allocation of functions and

responsibilities between departments and ministers. These allocations reflect a

government’s strategy and priorities and changes may often be made following an

election or to support new policy directions.

The Governor in Executive Council, on the advice of the Premier, appoints ministers,

establishes administrative units (departments) and formally allocates responsibilities to

ministers.

The process for considering MOG changes immediately after an election differs from

that relating to non-election changes.

Initially the Premier will establish the MOG Executive Committee, usually the

Commissioner for Public Sector Employment, DPC's Chief Executive and the Under

Treasurer to oversee implementation. Depending on the scope of the MOG changes

the Executive Committee will be supported by:

• MOG Taskforce

• MOG Implementation Groups

• MOG Working Groups

MOG changes can be challenging to those directly affected by them. Agencies are

required to consider many issues and deal with wide-ranging matters, some of which

can be very complex and time-consuming. Affected employees expect regular

communication about what is happening, legislative and government policy

requirements must be complied with, and for the process to work as smoothly as

possible actions should be undertaken with a cooperative ‘whole of government’ spirit.

This handbook includes key documents that have been used to plan and implement

recent South Australian Government MOG changes. The information incorporates

feedback from agencies relating to MOG changes in which they have been involved. It

is hoped that the handbook will support streamlined MOG arrangements within relevant

timeframes. We welcome further contributions to improve the information provided in

this handbook. Please contact us at Cabinet [email protected] if you have any

comments.

Information contained in this handbook is necessarily general in nature. Agencies

should seek guidance on particular issues relating to specific agencies and processes,

first from the responsible implementation committee and then, as required, from

Cabinet Office, the Department of Treasury and Finance (DTF), the Office of the

Commissioner for Public Sector Employment, the Crown Solicitor’s Office and

Parliamentary Counsel.

mailto:Cabinet%[email protected]


Machinery of Government principles

A whole of government approach

Agencies should take a whole of government approach to MOG changes. A

collaborative and responsive attitude encourages agencies and their employees to work

together to achieve the government’s objectives. It is expected that agencies will

communicate openly with one another and with central agencies to achieve the best

outcomes to implement government policies. Ultimately, the Machinery of Government

Executive Committee and Taskforce will make decisions and recommendations with a

whole of government perspective.

Negotiating in good faith

Negotiations between the transferring and receiving agencies should be undertaken in

good faith, balancing equity and fairness for the receiving agency against the need to

achieve the best outcome for the whole of government rather than the best outcome for

individual agencies. When this does not work successfully, the Machinery of

Government Executive Committee and Taskforce will have the mandate to take

decisions and make recommendations on what they believe is the most reasonable

approach.

Good policy outcomes require public sector employees to work effectively across the

transferring agency boundaries. Chief executives and other agency heads will expect

their agencies to work constructively and cooperatively with colleagues in other

agencies to achieve optimal outcomes.

Public sector employees should behave at all times in a manner that reflects the public

sector principles and practices and the sector’s Code of Ethics and public sector values.

In particular, working relationships should be productive and effective, with a genuine

commitment to collaboration, ethical behaviour and professional integrity.

Open and honest identification of resources

MOG changes involve identifying a function or functions to be allocated to one or more

different agencies. It is necessary to clearly identify the employees undertaking these

functions so that they may be transferred to identical or similar roles elsewhere. This is

known as the principle of ‘employees follow function’. Any relevant records should also

be transferred. This is known as the principle of ‘records follow function’.

It can be difficult to map support functions (such as corporate service areas) or

functions or programs that have been split. Agencies will recognise the need for cost

sharing and should reach an agreement that meets the test of reasonableness.

Identification of resources may include:

• budgets


• employee numbers, pay and conditions, and details of employees on leave or

temporarily reassigned

• assets and liabilities

• contract registers

• intellectual property such as data bases

• information and communications technology (ICT)

• legislative responsibilities

• contracts, licences, guarantees and indemnities, tax rulings, risks and

compliance programs.

Where it is not practicable or reasonable to split a function between agencies but both

agencies require that function, it may be appropriate to keep the function in one agency

while ensuring that the other agency receives the necessary services through a service

level agreement.

The transfer of budgets should include the immediate financial year and all years

covered by forward estimates. Transfers will include operating expenses and revenues,

investing activities, and assets and liabilities.

Any savings tasks associated with the transferred functions should be identified. These

tasks will also be transferred between agencies.

An agency should consider what level of corporate services should be transferred to

match any function transfer. This consideration should be informed by DTF principles,

which state that for all but the largest functional shifts, or where otherwise agreed

between agencies, following corporate resources should be transferred:

• ICT costs (per FTE)

• administration costs (including staff training) (per FTE) and

• a provision for other corporate overheads (per FTE).

The transferring and receiving agencies will agree on any changes to shared services

charges resulting from the transfer of functions. If agreement cannot be achieved in a

timely manner, the MOG Taskforce will make a recommendation on the matter for

decision by the MOG Executive Committee.

Subsequent budget papers will be based on the new structure, noting that:

• at the program level it will be necessary to reflect data from the previous financial

year

• agency statements will require reconciliation statements (financial statements to

programs).

An administrative restructure checklist is included in DTF's Financial Management

Toolkit at:

www.treasury.sa.gov.au/budget/compliance-and-resources/treasurers-instructions

http://www.treasury.sa.gov.au/budget/compliance-and-resources/treasurers-instructions


Timely and accurate information exchange

Successful completion of MOG changes depends on the quality and timeliness of the

information provided by the agency from which functions are transferred. Such

information must be up-to-date and include:

• organisational structure diagrams and employee lists

• affected programs and policy responsibilities

• all associated activities, such as service delivery arrangements and their

significance

• records and data documenting the functions being transferred, including agency

websites

• registers, instruments and records relating to accounting, tax, financial

management and governance matters of the transferred function(s)

• existing audit (internal and external) issues

• existing budget measures

• risk registers.

Constructive and open communication with employees

Employees can be transferred from one agency to another as a result of a MOG

change. Under section 9(1) of the Public Sector Act 2009, the Premier may, in order to

reorganise public sector operations, by notice in the Gazette, transfer employees within

the public sector, and make transitional or ancillary provisions that may be necessary or

expedient in the circumstances.

The provision of open and timely information to employees will support a smooth and

efficient transition. Agencies should identify activity to which employees can contribute,

such as matters affecting their accommodation and working environment.

Systems and structures that enable employees to contribute their views and maximise

their input will support MOG change effectiveness and minimise cultural change

impacts.

For more information about the Act and the legal framework, see page 14.

Legislation and policy accountability and compliance

Agencies will comply with legislation and policy, and be accountable and transparent, if

they follow established procedural frameworks, and ensure records are managed

appropriately and that appropriate delegations are in place.

Legislative and policy frameworks

Agencies should seek legal advice from the Crown Solicitor’s Office to confirm the

mechanisms or instruments required to achieve desired outcomes. A summary of the

key legislative provisions is provided at Attachment A.


Agencies should seek the advice of the Crown Solicitor’s Office and Parliamentary

Counsel about which matters should be delegated to ministers and the Governor.

Agencies should seek the advice of Parliamentary Counsel, Cabinet Office and the

Crown Solicitor’s Office, where applicable, about:

• the drafting of proclamations

• gazettal notices that relate to the transfer of employees under section 9(1) of the Public

Sector Act 2009.

Endorsement of proposed changes is required from the MOG Taskforce before

implementation.

Delegation and authorisation

Instruments of delegation and authorisation may be needed to ensure continuity of

decision-making. New and/or interim delegations and authorisations will need to be

made quickly and reflect the new arrangements, at the same time recognising that

people performing the functions may be in transferring agencies for some time.

If an agency is abolished, all delegations and statutory authorisations cease at the time

of the agency 's abolition. New instruments of delegation and authorisations should be

introduced without delay, outlining those responsible in future.

These instruments should also be finalised quickly for new agencies.

Both transferring and receiving agencies should review Premier and Cabinet Circulars

and other policy instruments that make reference to their agency to ensure the MOG

changes are reflected. Cabinet Office can assist with publication of the updated

documents on the website.

Records management

Official records of South Australian Government agencies must continue to be

managed and available during and after administrative change. The underlying principle

is that records, including electronic records, follow function rather than individual

employees. This can create challenges when an officer’s mailbox follows them to a new

agency when their role has changed and relevant records should properly remain with

the transferring agency.

https://dpc.sa.gov.au/resources-and-publications/premier-and-cabinet-circulars


Planning

Post-election Machinery of Government changes

After an incoming Premier has announced the ministry and new administrative

arrangements, the Machinery of Government Executive Committee will help agencies

understand the nature and ramifications of any MOG changes.

New ministerial arrangements take effect on the day the new ministry is sworn in by the

Governor. New administrative arrangements may also occur on the same day. While

transfers of budgets and employees may not be completed for some time, it is expected

that implementation of the changes will begin immediately and be completed as soon

as possible.

Governance arrangements

It is convention that the Premier allocate responsibility for overseeing MOG change

implementation to one or more senior public sector employees. Responsibility will

usually be given jointly to the Commissioner for Public Sector Employment, DPC's Chief

Executive and the Under Treasurer, who form a MOG Executive Committee.

A MOG Taskforce is then usually established to oversee implementation, and make

decisions or recommendations to the Executive Committee to ensure a timely transition

is achieved.

It is also recommended that an agency affected by MOG changes establish a suitably

senior MOG Implementation Group to oversee implementation and liaise with the

Taskforce.

MOG Executive Committee

The MOG Executive Committee oversees and provides direction for the implementation

of MOG reforms. It may also make decisions on MOG implementation when

recommendations are referred to it by the Taskforce. The Executive Committee:

• finalises or resolves any issues related to the transfer of resources (people,

financial, assets and liabilities) that cannot be resolved by the MOG Taskforce

• advises the Premier on matters and potential risks arising from the changes.


MOG Taskforce

The MOG Taskforce ensures that MOG changes are implemented in a timely and

effective manner. When matters cannot be resolved between agencies, this group will

determine the implementation of Cabinet's MOG decisions.

The Taskforce will be expected to meet regularly, and membership may include:

• the Commissioner for Public Sector Employment as chair

• senior representatives from Cabinet Office and DTF

• representatives of the Crown Solicitor's Office and Parliamentary Counsel.

Meetings may also include representatives from Shared Services, other senior officers

and officers providing secretariat support

Its terms of reference will reflect responsibility for:

• implementing MOG changes

• ensuring employees are legally transferred between administrative units • ensuring the principles of the Public Sector Act 2009 are honoured in appointing and

redeploying staff

• maximising certainty and minimising stress related to staff employment

conditions

• supporting efficient ministerial office operations

• minimising disputes about changes to accommodation, financial arrangements,

communication and ICT arrangements

• identifying policy issues and gaps to be resolved

• endorsing proposed changes before implementation.

Agency MOG Implementation Group

The impact on agencies of MOG changes may vary from relatively minor to substantial.

Major MOG changes often involve the transfer of functions from one agency to another

as a result of portfolios being restructured, created or abolished.

Planning the implementation of any changes should begin as early as possible. In the

first instance, chief executives or agency heads should resolve, as much as possible,

how a MOG change is to be achieved.

In the case of a state election, the incoming government briefs may address the impact

on an agency of pre-election policy statements. Consideration should be given to

employment and workplace relations issues that may arise, as well as the transfer of

appropriations and other financial matters.

To support smooth implementation, an agency affected by MOG changes should

establish a suitably senior MOG Implementation Group with clear lines of accountability.

This group and its regular communication with the MOG Taskforce will manage the

smooth and timely transition of functions, employees and resources, while ensuring

business continuity.


Depending on the scope of the MOG changes, the Agency MOG Implementation Group

may include representation from enabling areas such as ICT, legal, finance and human

resources, as well as managers responsible for receiving functions. It may be valuable

to include representatives from the transferring agency.

It is anticipated that the Agency MOG Implementation Group will meet regularly during

the transition period to plan for and coordinate a smooth transition process and to

provide advice to affected chief executives.

If needed, working groups may be established to report to the Agency MOG

Implementation Group. These working groups may facilitate specific aspects of the

change, such as:

• secondary MOG changes

• clarifying the purpose and respective responsibilities of the MOG Implementation

Group and/or working groups

• clarifying roles of the receiving and transferring agencies

• determining whether specific functions will transfer in their current or a modified

form

• articulating change objectives

• determining a function’s new direction, core business, structure and employee

arrangements

• ensuring stakeholders are informed and involved

• conducting necessary due diligence activities

• developing a communication strategy to keep employees informed

• developing a people management strategy, including realistic timeframes

• developing a project plan for implementation, including the transfer of resources

(financial assets and liabilities, employees, information technology), physical

relocation, and transfer of digital and physical records

• conducting a risk management assessment

• maintaining the general principles and approach for best outcomes.

Any issues that cannot be resolved at agency level are to be communicated in writing to

the MOG Taskforce.

A change management toolkit to help plan and implement successful change within the

public sector is also available at change.sa.gov.au/toolkitlintroduction/

Due diligence requirements

Due diligence refers to the need for a detailed examination of all aspects of the

functions being transferred, including assets, liabilities, and statutory, contractual and

other arrangements. Reference should be made to the Financial Management Toolkit,

which provides an administrative restructure checklist for transferring and receiving

agencies.

http://change.sa.gov.au/toolkitlintroduction/


The MOG Taskforce will develop a framework to ensure all necessary information

relating to the transferred functions is gathered. Issues include:

• policy and operational responsibilities

• assets and liabilities

• contractual arrangements and funding agreements, including property or

equipment leases and provision of goods and services

• partnerships or joint ventures

• boards/advisory committee membership

• intellectual property matters

• disputes and litigation

• taxation matters

• specific delegated functions and authorisations necessary to enable a smooth

transfer of functions

• identification of programs' statutory or administrative basis

• outstanding legal action, freedom of information requests and audit reviews

(internal and/or external)

• identification and management of agency information, records and data, and

records systems.

Communication

A communication strategy should be developed for each group overseeing the MOG

changes (that is, the Executive Committee, the MOG Taskforce and the Agency MOG

Implementation Group).

Communication should outline to employees the reasons for and objectives and extent

of the changes. It should be provided as quickly and often as possible to alleviate

concern and contribute to a streamlined process.

Consideration should be given to:

• conducting meetings or information sessions for affected employees

• providing regular email updates to employees, especially those affected by the

changes

• establishing a website outlining the changes

• establishing a telephone or email hotline to respond to specific inquiries.

In some cases, it may help to nominate a specific communication team (or person) to

take responsibility for coordinating communication. This can avoid employees receiving

conflicting and potentially inaccurate information during the MOG process.

Cabinet submissions and notes and ministerial notices

When the MOG Taskforce has approved arrangements, a Cabinet submission will be

prepared so that Cabinet and Executive Council can consider the arrangements.


When proclamations are required, Parliamentary Counsel, in consultation with Cabinet

Office, will examine each submission and draft relevant proclamations to be issued by

the Governor in Executive Council. Cabinet Office will arrange for the proclamations to

be published in the Government Gazette on the day they are issued by the Governor in

Executive Council.

When employees are transferred under section 9(1) of the Public Sector Act 2009,

agencies need to prepare the draft ministerial notices and discuss these with Cabinet

Office and the Crown Solicitor’s Office. Once finalised by the agency, the notices need

to be forwarded to the Premier for signature. The drafting agency will need to arrange

for the notices to be published in the Government Gazette.

For key legislative provisions, instruments and approvals, refer to Attachment A.


People management

Agencies involved in receiving or transferring employees should develop a people

management strategy to ensure a smooth transition for all affected employees. MOG

changes can cause a large degree of disruption to employees. Human resource issues

need to be managed appropriately to maintain employee morale and focus and uphold

the public sector values and Code of Ethics.

It is important for both the receiving and transferring agencies to establish a MOG

Implementation Group to manage and oversee the changes.

Effective change management includes chief executives and agency heads regularly

advising employees on the rationale for, and the nature and extent of, the changes. An

agency’s MOG Implementation Group should consider relevant human resources

legislation, principles and policies, particularly in relation to employment relations.

Receiving and transferring agencies will need to establish early contact and work

cooperatively to ensure continuity of government business and minimal disruption.

Documentation of the process is essential. Agreements between affected chief

executives or agency heads should detail all decisions, particularly relating to payment

of transition costs and recovery of costs at a later stage. This is particularly important

where a transferring agency agrees to continue providing some services for a period,

such as allowing employees to remain in its accommodation and maintaining

communication and ICT support.

As a matter of priority, the agencies should address:

• identification of affected employees, including whether physical relocation is

needed

• connection to agency ICT systems, including email

• calculation of employee entitlements

• transfer of physical and digital personnel records of affected employees.

Agencies should also identify any other outstanding employee-related actions, such as

investigation and other processes related to suspected misconduct or other

unsatisfactory performance, substantive complaints, industrial disputes and grievances,

and workers compensation claims.

Affected employees should be consulted and kept informed throughout these processes

and given the opportunity to express any concerns to their managers. Receiving

agencies should provide induction sessions and information packages to help

employees to transition into the new agency.

Transferring and receiving agencies must agree what agency items the transferring

employees are permitted to take with them. Items for consideration may include

vehicles, laptops, iPads, mobile phones, credit cards and security passes. This should

be documented as part of the transfer agreement.


Employees should also ensure that all agency records for which they are responsible

(including physical or digital format records) are either captured into agency records

management systems or, in the case of physical format records, returned to agency

records management areas according to agency procedures.

The transferring agency should also consider and advise the receiving agency about

the implications of the transfer on delegations or authorisations required to perform

duties, governance documents, contractual arrangements and any outstanding

procurement or legal action.

Legal framework

Transfer of employees

The Public Sector Act 2009 and various sector-specific legislation such as the Education Act 1972

and the Health Care Act 2008 make provision for employment, management and governance

matters relating to the South Australian public sector.

Section 9 of the PS Act provides for flexible arrangements for transfer of public sector

employees within the public sector:

9 – Flexible arrangements for transfer within public sector

(1) The Premier may, in order to reorganise public sector operations, by notice in the Gazette – (a) transfer employees within the public sector; and (b) make transitional or ancillary provisions that may be necessary or

expedient in the circumstances.

(2) A notice under subsection (1) has effect according to its terms and despite

any other Act.

(3) A public sector agency may transfer an employee of the agency to other

employment within the public sector, on conditions that maintain the

substantive remuneration level of the employee or are agreed to by the employee.

(4) A public sector agency is not to transfer employees under this section except with the agreement of any other public sector agency directly

affected by the transfer.

(5) The regulations may prescribe rules relating to the movement of employees

within the public sector, including movement initiated by employees.

(6) A transfer of an employee under this section does not constitute a breach of

the person’s contract of employment or termination of the person's

employment or affect the continuity of the person’s employment for any

purpose.

Section 9(1) is usually used by the Premier to move groups of employees from one

agency to another. The group may be listed as individuals or may be described by

reference to current location.


The advantage of naming individuals is that, for those individuals, there is certainty that

the transfer applies to them. However, it carries a risk that an individual (for example,

an individual on extended leave) may be missed and has to be transferred separately at

a later date. Describing a group of employees by their functional unit, where units are

being transferred, is sometimes preferable.

Very small numbers of employees (fewer than 10) are sometimes transferred by

agreement by chief executives using section 9(3) and 9(4).

Section 9 notices should be referred to the Crown Solicitor for advice. They are not

drafted by Parliamentary Counsel.


Creation of a new agency

Section 26(a) of the Public Sector Act 2009 provides for the establishment of an

administrative unit (department) and the assigning of a title to it. At the time of creation,

the Governor will assign a responsible minister in Executive Council.

The Premier will appoint a Chief Executive who then acts as the employing authority for

that department.

The establishment of a statutory authority may be achieved by legislation or by regulation under the

Public Corporations Act 1993.

Abolition of an agency

Section 26(c) of the Public Sector Act 2009 provides for the abolition of a department,

where all the functions of a transferring agency are moved to one or more receiving

agencies.

Where an agency is abolished, the chief executive or head of the receiving agency

acquiring the majority value of net assets from the abolished agency will prepare the

financial statements/report of the abolished agency for its final reporting period as early

as practicable after the date that the agency ceases to exist. The receiving agency shall

comply with section 23 of the Public Finance and Audit Act 1987 in respect of the

certification and audit of the financial statements of the abolished agency.

Where an agency is abolished, the final reporting date for financial reporting shall be:

• the gazettal date, for an agency or public corporation

• the date of deregistration for a Corporations Law Company

• the date of repeal of the enabling legislation (or such other date that may be

prescribed) for a statutory authority.

Industrial framework

An important part of achieving the transfer of employees to another existing agency or a

new department or statutory authority is the continuity of industrial rights or the

management of altered rights within the existing industrial framework under which the

employees operate. This requires advice from the Industrial Relations team and may

require legal advice.

Consideration should also be given to the transferability of superannuation entitlements

of employees transferring between schemes.

Employees follow function

Transfer of employees due to MOG changes is made on the general principle of

‘employees follow function’. Under this principle, an affected employee is assigned with

their function to an identical or similar role in another agency, with employment status

https://www.treasury.sa.gov.au/Our-services/industrial-relations


and classification remaining the same. This is dealt with in the relevant Gazette notice

transferring the employees.

The transferring agency will need to identify the ongoing, term and casual employees

who are to be transferred.

In most cases, the identification of employees to be transferred is a straightforward

process. Complexities can arise, however, where a functional or program area is to be

split. This may, for example, affect support functions. This may require detailed

negotiations between the transferring and receiving agencies to identify the employees

to be transferred.

As a general rule, unless exceptional circumstances apply, the number of corporate

services employees who are transferred will be in proportion to the number of program

employees transferring out of an agency.

Transferring agencies will need to provide details about:

• employees not employed on an ongoing basis

• employees absent from the workplace on any form of leave, working on a casual

or term basis in another agency, or absent on account of a compensable illness

or disability.

In situations where there may be impediments to transferring employees with functions,

the receiving and transferring agencies should make all efforts to accommodate the

particular employee(s). Where agencies are unable to resolve the situation, the MOG

Taskforce should be contacted for advice.

When negotiating the arrangements for the transfer of employees, an agency should

identify employees who are currently working in the transferring agency but who have a

right of return to their original or ‘home’ agency where they are substantively employed.

In this situation, if the employee’s duties are, because of MOG changes, part of

functions that move to a receiving agency, it is the transferring agency’s responsibility to

enact the transfer.

It is preferable that this occur when the Premier transfers employees by notice under

section 9(1) of the Public Sector Act 2009. If it is overlooked at this stage, it should be

completed by mutual agreement between the agencies under section 9(3) of the Act.

Agencies requiring clarification about specific cases should seek further advice from the

Crown Solicitor’s Office.

Transfer of employees with a workers compensation claim

The receiving agency assumes responsibility for the obligations of the transferring

agency in respect of an employee with a workers compensation claim, including where

the claim is made in the receiving agency about an incident that occurred during

employment in the transferring agency. The transferring agency should provide a

thorough briefing and transfer of relevant records.

https://www.agd.sa.gov.au/justice-system/crown-solicitors-office


Transfer of executives

Executives may have strategy responsibilities in addition to particular functions. The

receiving agency may wish to review an executive’s role statement to ensure it reflects

the role in the receiving agency.

Incomplete recruitment action

A recruitment process is completed, as a matter of contract, when there has been an

offer of acceptance. Once these have occurred, the new employee will have rights –

possibly to compensation – if there is a purported abandonment of the employment

relationship. Prior to offer and acceptance, a recruitment process may be aborted

without the state incurring liability.

If negotiations with a preferred candidate are at a crucial stage when a MOG transfer of

function occurs, the agencies should discuss the process to determine whether it

should continue and seek legal advice if proposing to terminate any contractual

relations.

Induction of transferred employees

The receiving agency should ensure transferred employees are given an appropriate

induction to the receiving agency as soon as possible, to provide them with information

such as:

• employment arrangements (if changed)

• agency structure, governance and accountability

• management systems, including health and safety matters and performance

management

• agency processes and arrangements for how work is prepared, including ICT

issues and required formats for written documents, records management policies

and practices

• workplace arrangements

• employee obligations under the Public Sector Act 2009 and the Independent Commissioner

Against Corruption Act 2012.


Financial management

In the first instance, chief executives are responsible for resolving, as far as possible,

how MOG change is to be achieved. To inform this process, the following advice is

provided. This includes an extraction from the Financial Management Toolkit (financial

reporting checklist section). The full document is available on the DTF website at:

www.treasury.sa.gov.au/budget/compliance-and-resources/treasurers-instructions

Agencies should refer to the toolkit for guidance about administrative restructures.

Every effort is made to ensure the information in this handbook is updated in line with

changes to the toolkit. However, the toolkit should be considered the primary guide.

Budgets

The budgets to be transferred from the transferring agency to the receiving agency

should be agreed before the date of transfer. In the majority of cases, this will be

through sign-offs by chief executives.

Where budgets and appropriation have not been formally transferred prior to the date of

transfer (as specified in the Gazette), the receiving agency will spend money previously

appropriated to the transferring agency (or otherwise held) to fund the employees and

functions transferred. Thus, the receiving agency is spending their currently approved

appropriation and expenditure authority in performing what are now (from the date of

transfer) its own functions.

No delegations from the chief executive of the transferring agency will be required. The

receiving agency can proceed on the basis that in due course budgets will be

transferred from the transferring agency to cover expenditures from the date of transfer.

Budget transfers can occur through the intervention of the MOG Executive Committee if

agreement has not been reached within a reasonable period.

This will satisfy the requirements of Treasurer’s Instruction 8, clause 8.7.2, whereby a

chief executive or agency head may have a reasonable expectation that sufficient

financial resources will be available to meet commitments as they fall due.

Major transfers

For larger function transfers that are not able to be managed within the existing

appropriation and expenditure authority limits of the receiving agency while budget

transfers are being finalised, an interim transfer of appropriation and expenditure

authority (based on a reasonable estimate of funds to be transferred) can be organised

if necessary. This will require the approval of the Treasurer under section 5 of the

Appropriation Act 2013.

The receiving agency is the financial reporting agency from the date of transfer. Where

the formal transfer of budgets has not occurred as at the date of transfer, the

transferring agency should provide financial reports on the activities of the transferred

functions to the receiving agency from the date of transfer to the time that budgets are

https://www.treasury.sa.gov.au/budget/compliance-and-resources/treasurers-instructions


actually transferred. This will enable the receiving agency to undertake continued

financial management of the activities associated with the functions being transferred.

There may be some lag in ensuring that payments are recorded against the receiving

agency’s special deposit account. If so, the transferring agency should capture any

costs associated with the transferred functions and, in due course, charge those

amounts to the receiving agency, such that all costs are reflected in the account of the

receiving agency from that date.

Allocation of corporate costs

DTF has prepared the following principles regarding the allocation of corporate costs

between agencies to inform the MOG process. The application of these principles

promotes consistency in approach, particularly where there are areas of disagreement.

Shared Services charges

The appropriate change in shared services charges for the receiving agency as a result

of the machinery of government changes will be developed by Shared Services SA.

Once the functions to be transferred have been specified, agencies should, in the first

instance, contact Shared Services SA to facilitate preparation of the calculation.

Corporate costs

The level of corporate resources to be transferred when functions shift between

agencies has been set to include, along with employee and program costs, the

following:

• ICT costs (per FTE)

• administration costs (including staff training), including employee training (per

FTE)

• provision for other corporate overheads (per FTE).

For all but the largest functional shifts, or where otherwise agreed between agencies, it

is intended to adopt an approach consistent with this. On that basis, the amount of

corporate costs to be transferred between agencies for the above items (for each FTE

transferred) will be:

2018-19 - $9,624 pp

2019-20 - $9,865 pp

2020-21 - $10,111 pp

2021-22 - $10,364 pp

2022-23 - $10,623 pp

For large functional transfers, more detailed analysis will be required in consultation

with DTF.


Accommodation

Unless specific circumstances arise, the transfer of accommodation costs will be based

on the square metre rental cost per FTE of the accommodation of the transferring

agency.

Banking and appropriations

To ensure the maintenance of the Treasurer's ledger and banking records:

• the receiving agency should continue to reconcile and advise DTF of the balance

of deposit accounts until both the receiving and transferring agencies agree on

the transfer of responsibilities. DTF should be advised when an agreement has

been reached, so it can monitor and ensure correct reporting in the Treasurer’s

ledger

• where funding for Special Act payments is provided in arrears, advice to DTF

should indicate that the receiving and transferring agencies agree on the scope

and timing of the transfer, and DTF should be advised so payments can be

monitored

• where changes are required to bank account names, the agency should deal

directly with the government’s approved bank. The bank will require a copy of the

Gazette advising of the changes and information relating to signatory changes.


Records management

State Records’ guidelines on managing records during MOG changes are available at:

https://government.archives.sa.gov.au/content/digital-records-management

Receiving and transferring agencies must collaborate to develop a records

management strategy. This strategy should ensure that any debts owing to one agency

continue to be pursued by the receiving agency. Such debts may relate to salary

overpayment, reimbursements of private use of government assets, contractual debts,

grant clawbacks or other matters.

Where records are held in physical format, receiving and transferring agencies must

arrange for the movement of records and update of systems that control those records,

which may be databases, spreadsheets or records management systems.

Where records are held in digital formats, receiving and transferring agencies need to

establish appropriate mechanisms for export and import. Both agencies must ensure

that all required metadata associated with the records is exported from the transferring

agency’s system, linked to the correct record and appropriately imported into the

receiving agency’s system.

Personnel forms such as timesheets, medical certificates and leave forms must also be

transferred to the receiving agency.

State Records of South Australia provides a variety of services to State Government

agencies. These services help agencies comply with the State Records Act 1997,

legislative requirements, and completion of appropriate records management practices.

State Records’ guidelines assist agencies to mitigate disruption to the corporate

memory and the business of government by ensuring that agencies’ official records

continue to be managed and available during and after MOG changes. Agencies can

achieve this by:

• clearly documenting the transfer of official records between agencies

• clearly identifying the responsibilities of relevant employees for the transfer of

official records between agencies

• disposing of official records according to the State Records Act 1997

• establishing a clear audit trail of movements of official records between agencies

• transferring official records between agencies to support MOG changes

• notifying State Records of functional changes before they occur and reporting

the outcomes of MOG changes.

Information and communication technology changes

Agencies affected by MOG changes should develop strategies that outline policies,

procedures and other factors that affect or are affected by information and

communication technology (ICT) systems. Development of an ICT strategy should

occur early in the planning process as significant resources and time may be required.

https://government.archives.sa.gov.au/content/digital-records-management


Consideration should be given to resources required for:

• downloading and re-loading databases, email and personal drives

• diverting email and phone calls where necessary (for example, where a function

has many external stakeholders or where policy guidelines have recently been

widely distributed)

• developing programs to transfer personnel data between human resources areas

• arranging for transfer of software and hardware, including licensing of software,

devices, printers and file servers

• contractual obligations relating to outsourced computer services

• arranging for employees to transfer to the receiving agency’s systems and

products, including provision of training

• updating internal and external websites

• creating new logons and email addresses

• arranging for information transfer

• installation

• providing information on disaster recovery and business continuity plans.


ATTACHMENT A – Machinery of Government Changes:

Key Legislative Provisions, Instruments and Approvals

Action Instrument and

legislation

Cabinet approval required

Executive Council approval required

Gazettal required

Establishment,

alteration or abolition

of a department

Proclamation under

section 26 of the

Public Sector Act

2009

Gazettal occurs

with Exec

Council process

Changes to the

Minister responsible

for an administrative

unit

Proclamation under

section 28 of the

Public Sector Act

2009

Gazettal occurs

with Exec

Council process

Conferral of

ministerial functions

and powers between

ministers

Proclamation under

section 6 of the

Administrative

Arrangements Act

1994

Gazettal occurs

with Exec

Council process

Delegation of

functions and powers

by a minister to

another minister

Gazette notice

signed by the

minister delegating

the functions or

powers under

section 9 of the

Administrative

Arrangements Act

1994

(Notice to

Cabinet required

but not a pre-

condition)

Transfer of

employees between

public sector

administrative units

Notice signed by the

Premier under

section 9 of the

Public Sector Act

2009

(Notice to

Cabinet required

but not a pre-

condition)


ATTACHMENT B - Machinery of Government implementation

checklist

This list provides suggest ions for implementation and issues for consideration. Some

issues may not be relevant in specific situations, and some may require legal advice or

advice from agencies with relevant policy responsibility or expertise.

Planning

Tasks/actions Status

1. Receiving agency to establish a MOG implementation group or

change management team to coordinate implementation of the

MOG changes, and consider whether the transferring agency

should be represented

2. Receiving agency to consult transferring agency to consider

whether a working group should be established in the

transferring agency to undertake scoping and answer due

diligence questions

3. Receiving agency to establish a due diligence framework and

develop questions relating to transferring functions and

programs, such as including assets and liabilities, contracts

register, intellectual property, disputes and litigation, lapsing

programs, employee numbers, and pay and conditions

General considerations

1. Transferring and receiving agency to clarify objectives and timeline expectations

2. Transferring agency to identify outstanding legal action, FOI requests and reviews, and

advise receiving agency

3. Transferring agency to identify governance documents requiring review due to MOG

changes, such as MoUs, circulars

4. Conduct a post-MOG change review to ensure all matters have been resolved

5. Transferring and receiving agencies to be familiar with and apply the change management

toolkit

www.change.sa.gov.au/toolkitlintroduction

http://change.sa.gov.au/toolkitlintroduction


People management


1. Agencies to identify employees to be moved

2. Transferring agency to provide details of ongoing and other

employees to be moved and of any employees on leave without

pay or on temporary assignment within

the agency or elsewhere

3. Agencies to negotiate temporary arrangements for the transfer

of individual employees

4. Transferring agency to identify any outstanding recruitment

action relating to jobs connected to a transferred function and

advise the receiving agency of status

5. Transferring agency to advise receiving agency of unresolved

processes relating to performance, compensation, industrial

disputes or other claims

6. Receiving agency to conduct induction sessions and provide

information packages to transferred employees

7. Receiving agency to manage worker compensation related

matters for transferred employees

8. Transferring agency to finalise performance reviews

9. Transferring agency to ensure employees capture and/or return

outstanding agency records (physical or electronic)

10. Receiving agency to consider workplace relations implications

of changes and seek legal advice if necessary

11. Receiving agency to consider and obtain approval for

delegations to take effect on the day of transfer

Communication


1. Agencies to develop communication strategies informing

employees of proposed changes and their impact, and deliver

through website, email and/or phone line

2. Agencies to consult affected employees throughout the process

and provide opportunities to raise concerns


Financial management


1. A financial reporting checklist can be found within the Financial

Management Toolkit. This can be found at:

www.treasury.sa.gov.au/budget/compliance-and-

resources/treasurers-instructions

ICT


1. Agencies to arrange for websites to be updated, including links

with other websites

2. Agencies to arrange for telephone calls and emails to be

diverted

3. Transferring agency to arrange for databases, emails and

personal files to be downloaded and receiving agency to

manage re-load

4. Receiving agency to arrange link to its ICT network for

employees remaining in transferring agency's accommodation

5. Agencies to arrange for archiving/updating websites, internal

distribution lists, contact lists and intranet sites

Information and records management


1. Agencies to discuss arrangements and develop a strategy for

transferring records in all formats including records in databases

2. Transferring agency to identify and list records (physical and

digital) required for ongoing management

3. Transferring agency to arrange with the receiving agency for

transport of physical records

4. Transferring agency to arrange hand-over of computer systems

and/or storage media for digital records

5. Receiving agency to check records received against

documentation provided by transferring agency

6. Agencies to decide access arrangements for records needed by

both




Accommodation, furniture and equipment


1. Agencies to determine when and where employees will

move

2. Agencies to identify and agree to necessary transfers of

furniture, equipment, etc.

3. Receiving agency to arrange removal of furniture and

equipment, provide packing boxes, etc.

4. Transferring agency to identify and arrange temporary

access requirements

5. Transferring agency to arrange return of agency items

(laptops, mobile phones, keys, security passes, credit cards,

vehicles, books, etc), according to transfer agreement s.

ATTACHMENT C - References and Resources

www.treasury.sa.gov.au/public-sector-operations/compliance-and-resources/treasurers-instructions

www.change.sa.gov.au/toolkitlintroduction

For more information: W dpc.sa.gov.au

Cabinet Office E [email protected]

http://www.treasury.sa.gov.au/public-sector-operations/compliance-and-resources/treasurers-instructions

http://change.sa.gov.au/toolkitlintroduction

mailto:[email protected]

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